J.C. Penney files for bankruptcy
Long-troubled U.S. department store chain, J.C. Penney, has become the latest brick-and-mortar retailer to crumble amid stay-at-home orders and a freezing of the consumer economy.
The company filed for bankruptcy protection, Friday - with plans to permanently close some stores - saying it reached an agreement with existing lenders for $900 million dollars of debtor-in-possession financing to aid operations while it navigates bankruptcy proceedings.
The loan consists of $450 million in fresh financing.
While J.C. Penney plans to reorganize and emerge from bankruptcy proceedings after eliminating several billion dollars of debt, the company said it will also explore a sale.
Reuters earlier reported that the company was nearing a bankruptcy filing and negotiating the financing.
The 118-year-old department store chain - which once operated more than 1,600 locations - has been in a long decline.
Even before stay-at-home orders, J.C. Penney was struggling with nearly $4 billion of debt and pressure from both discount retailers and e-commerce companies.
J.C. Penney’s bankruptcy filing comes in the same month Neiman Marcus and J. Crew filed for bankruptcy protection after alternative attempts to rework their finances failed.
